Home breadcru News breadcru Company breadcru ECOM daily cotton market recap, Nov 16, 2006

ECOM daily cotton market recap, Nov 16, 2006

17 Nov '06
3 min read

This morning's US export sales and shipments showed fairly decent sales of 177,600 combined upland and Pima bales. Turkey was the main buyer with 90,000 bales, whilst South Korea bought a total of 35,000 bales. Export shipments were decent without being too impressive, with a combined 150,000 running bales exporting.

After yesterday's recovery, March looked to rebound early this morning, but it's inability to hold onto the early gains as well as closing at a new contract low close leaves an indelible mark on today's chart.

The March contract still looks to be somewhat rangebound, between overall parameters of 51.25 and 54.00. Trending indicators are nearly all bearish including the 9 day EMA ( 52.45 ) and the 50 day SMA ( 53.80 ).

Momentum wise things are breaking down, currently at 36.57 on the RSI. The key for now is which side of this current sideways channel will get taken out first.

Odds stack on to the downside, especially given it's close vicinity, however we shall look for clues on the nearby December delivery for more direction.

Click here to view the graphical presentation.

ECOM USA Inc

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